World of Air Fares Thea van de Loo
Welcome and Program Welcome: Thea van de Loo World of Air Fares classes of service booking classes yield management alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
You in the World of Fares Your manager was traveling by plane. Talking with the traveler next to him Suddenly they talked about the air fare.your manager paid substantial less. then the other traveler sitting next to him WELCOME IN THE WORLD OF FARES
Program - Chapter World of Air Fares classes of service booking classes yield management break alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
Travel Class First - F - Utmost Luxury Seat or Bed? Access to luxurious lounges Long haul Watch Out: within USA: Domestic Business Class is called First Not every airline has First, e.g. KLM LH, BA, EK do Highest fares, less seats Business - C - Luxurious Comfortable Seat, almost bed Access to comfortable lounges Watch Out: Long or Short haul differs Different names: e.g. BA = Club World High fares Economy - Y - Standard, lowest Comfort Standard Seat, No access to lounges Except for certain FF levels Watch Out: Lower higher restrictions Different names:e.g. BA = World Traveler Also known as: Tourist class Coach Class Lower fares higher restrictions
Economy Plus / Comfort / De Luxe Economy and more comfort is.. - More leg space - Wider seat (sometimes) - Service / food / drinks like economy - Long Haul - Separate cabin: e.g. World Traveler Plus (BA) - Various fares - E.g. KLM Y fare plus 80-140 (for each stretch) - Lower than business class
Seat Map (www.seatguru.com) KLM Boeing 747-400
Seat Map (www.seatguru.com) KLM Boeing 737-300
Seat Map (www.seatguru.com)
Program - Chapter World of Air Fares classes of service booking classes yield management break alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
Booking Class First - F - Booking classes: F/ P / A etc Flexible in changes and cancellations Possible specials: Advance booking period Small change fee Small cancellation fee Business - C - Booking Classes: J / C / Z / I / D / S / R etc Flexible in changes and cancellations Possible specials: Advance booking period Small change fee Small cancellation fee Economy - Y Booking classes: Y / K / L / B / H / V / N etc Flexibility: Full flex Semi flex Fixed / non flex Restrictions of stay: Minimum e.g. SU / 7 D Maximum e.g. 3M / 6M
Special Business Class Example Amsterdam Beijing Amsterdam 1. ZLSNL 2639 Z NRF - - 14 7+ 12M R 1. Advance booking: 14 days before departure 2. Minimum stay 7 days 3. Change fee 200 4. Cancellation fee 400 2. ZFFNL 3413 Z - - - - - - R 1. Flexible
Mention airlines with a comfort seat? Economy and more comfort is..
Booking Class: Economy Plus Booking classes: W / T / M / B etc Flexibility: Semi flex Fee for changes and/or cancellations Possible advance booking period
World of Booking Classes Booking class codes differ per airline: S-class KLM = Economy Class Delta Airlines = Business Class J-class: Mostly Business Class Air France: domestic, economy only
Availability of Booking Classes Amsterdam Moscow 16 Jan and 30 Jan
Program - Chapter World of Air Fares classes of service booking classes yield management break alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
Yield Management Wanted yield for this flight (B777 231 seats) 300.000 First Class 14 seats x 4.000,- 56.000,- Business Class 48 seats x 2.000,- 96.000,- Sub total 152.000,- Rest of 169 Economy Class seats yield 300.000 minus 152.000 148.000,- Full fare 80 x 1.200,- 96.000,- Pex fare 50 x 650,- 32.500,- Apex fare 39 x 500,- 19.500,-
Yield Management next day Wanted yield for this flight (B777 231 seats) 300.000 First Class 14 seats x 4.000,- 56.000,- Business Class 48 seats x 2.000,- 96.000,- Sub total 152.000,- Rest of 169 Economy Class seats yield 300.000 minus 152.000 148.000,- 149.500,-- Full fare 80 x 1.200,- 96.000,- Pex fare 60 x 650,- (plus 10) 39.000,- Apex fare 29 x 500,- (min 10) 14.500,-
Yield Management & low cost carrier (Fictitious) Handling Costs 1000,00 cleaning, check-in, baggage-handling,fuel & personal: Airport Costs 2000,00 platform/gate use, navigation Administration 1700,00 incl. fees credit card companies en taxes Lease costs aircrafts, fuel, maintenance 3100,00 Promotion: 300,00 Costs crew : 1100,00 Total: 9200,00 Profit 10%: 1000,00 Average ticket price: 10200/150 = 68,00 WATCH FOR ANCILLARY FEES
Spotlight: Ancillary Fees The Issues Total price Visibility Leverage Source: Advito 2012 Industry Forecast,
WHAT CAN YOU SAY TO YOUR MANAGER? If he tells you this story. Your manager was traveling by plane. Talking with the traveler next to him Suddenly they talked about the air fare.your manager paid substantial less. then the other traveler sitting next to him THE ANSWER IS
Manage your yield! Yield Management
Program - Chapter World of Air Fares classes of service booking classes yield management break alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
Mention Alliances and airlines in it:
Alliances
Alliances: multilingual Source: Wikipedia, Jan 2012
Frequent Flyers: e.g. Sky Team Elite Priority reservations wait listing Priority airport standby Priority boarding Priority check-in Preferred seating
Or Sky Team Elite Plus Priority reservations wait listing Priority airport standby Priority boarding Priority airport check-in Preferred seating Priority baggage handling Additional checked luggage allowance Airport lounge access Guaranteed reservations on sold-out flights Express airport security (in some hub airports)
Code Share : one flight Multiple flight numbers one flight Original operating carrier Carrier booked = fare booked
Program - Chapter World of Air Fares classes of service booking classes yield management break alliances and Code Share Fare rules moment of booking mileage or route fares World of Taxes Creative ticketing Wrap Up
Rules of Fares : Awareness (1) Used abbreviations: OW = one way RT = return way Indentification Fare by Fare Basis: Fare type normal (full) fares: (e.g.) F = First FRT = First round trip C = Business COW = Business class one way Y = Economy YL = Economy low season Fares valid in certain period: Season Codes for period show: H = High season K = Shoulder season L = Low season Week / weekend codes: W = weekend X = weekday N = night (rarely)
Rules of Fares : Awareness (2) Non Flex / Fixed: 100% fixed No refund Semi Flex: Change and/or cancellation: fee (e.g. 100-200) Change: If availability in same booking class Full Flex: 100% refundable Before departure after departure (unused) Indentification Fare by Fare Basis: Fare type special fares: EE = Excursion (full flex) PX = Pex AP = Apex AB = Super Apex SX = Superpex Advance Purchase: AP Minimum stay: Several days or Sunday Rule Maximum stay: Month: 1M 3M 6M Days: 45 90-180
Rules of Fares : Awareness (3) Examples fare basis specials: YHEE3M = High season Excursion valid for 3 months BKXPX1M = Shoulder season, Midweek, Pex, valid 1 month YWSX180IN = Weekend, superpex, valid 180 days, infant Tips: Combined fare = Combination of booking classes Ticketing deadline = Ticketing Time Limit Airline: sets rules & checks Low cost: booking = ticket Ticket issue = fare guarantee
Time of Booking Advance Purchase: Has to be booked a certain number of days in advance For all classes Availability of fares: Close to departure less availability Influence of Yield Management
Fare Structure Mileage fare Routing fare
World of Taxes
World of Taxes and fees Airport Security Tax Air Transportation Tax Passenger Service Tax Fuel Tax Country Security Tax Noise Isolation Tax Aphis Fee Customer Use Fee Credit Card Fee etc etc different codes per country and/or destination
Fares Carrier related KLM - London KL1001 10OCT AMS LHR 0715 0740 KL1026 12OCT LHR AMS 1825 2040 BA - London BA 423 10OCT AMS LHR 0720 0735 BA 442 12OCT LHR AMS 1755 2010 Fare: EUR 128.00 TAX: EUR 160.47 TTL: EUR 288.47 Fare: EUR 55.00 TAX: EUR 133.92 TTL: EUR 188.92
KLM New York KL 641 10NOV AMSJFK 1325 1535 KL 642 14NOV JFKAMS 1745 0710+1 Fare: EUR 2665.00 TAX: EUR 466.28 TTL: EUR 3131.28
Creative Ticketing Playing around with: Airlines codes Cross ticketing fake or not One ways
Fares Carrier related KLM - Moscow KL 903 10DEC AMS SVO 1140 1800 KL 904 13DEC SVO AMS 1900 1940 Aeroflot - Moscow SU3121 10DEC AMS SVO 1140 1800 SU3120 13DEC SVO AMS 1900 1940 Fare: EUR 365.00 TAX: EUR 140.59 TTL: EUR 505.59 Fare: EUR 250.00 TAX: EUR 119.52 TTL: EUR 369.52
Cross Ticketing, fake or not KLM Geneva: once KL1927 23OCT AMS GVA 0935 1105 KL1934 23OCT GVA AMS 1925 2100 Cheapest Fare cheapest: EUR 633.90 incl. tax At moment of reservation KLM Geneva: twice KL1927 23OCT AMS GVA 0935 1105 KL1934 23OCT GVA AMS 1925 2100 KL1929 12NOV AMS GVA 1230 1400 KL1928 14NOV GVA AMS 1150 1335 Fare red lines EUR 193.90 incl. tax Fare green lines EUR 232.90 incl. tax TOTAL EUR 426.81 Saving EUR 197.09
Return or one way Etihad EY 100 C 03NOV JFKAUH 2305 1945+1 EY 101 D 06NOV AUHJFK 1030 1630 Two different business class available New York Abu Dhabi Two one way: Outbound EUR 6151.00 Inbound EUR 4012.86 incl. tax Total EUR 10163.86 One ticket fare EUR 11645.90 incl. tax Saving EUR 1482.04
Tips from the expert No comfort seats on code share flight number Different airlines = different records Different airline = different restriction = same flight Some airlines (e.g. LH-LX) check cross ticketing Golden rule for creative ticketing: high saving
Wrap Up